---
title: "South Africa Likely to Keep Preferential US Trade Access, Envoy Says"
description: "South Africa will likely keep its preferential access to US markets because hundreds of American firms are also benefitting, according to the nation’s ambassador to BRICS."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Newsdeck"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2023-08-14-south-africa-likely-to-keep-preferential-us-trade-access-envoy-says/"
published: "2023-08-14T18:24:55"
lang: "en-ZA"
word_count: 235
---

# South Africa Likely to Keep Preferential US Trade Access, Envoy Says

> South Africa will likely keep its preferential access to US markets because hundreds of American firms are also benefitting, according to the nation’s ambassador to BRICS.

By Bloomberg · Published 14 August 2023, 20:24 SAST

## Key points
- Despite tensions in South Africa-US relations, money talks and AGOA looks likely to remain in place.
- South Africa has asked the US to extend AGOA, which expires in 2025.
- US lawmakers have called for a review of SA's access to AGOA due to SA's non-aligned position towards Russia and its perceived development level.
- Tensions between the US and SA spiked earlier this year over allegations of arms supply to Russia.
- Despite sanctions, companies continue to do business with Russia.

## Content

“I don’t think there is any serious threat of us losing preferential access to AGOA. AGOA is not a one-way issue, trade is not a one-way issue,” Anil Sooklal said at a Bloomberg conference in Johannesburg on Monday. “You have 600 US companies doing business in South Africa. Are they going to turn their backs on that?”

South Africa has asked the US to consider an early extension of the African Growth and Opportunity Act, which expires in 2025.

But some US lawmakers have [pushed](https://www.bloomberg.com/news/articles/2023-06-13/south-africa-says-it-has-us-support-to-host-agoa-forum-this-year) the Biden administration to review South Africa’s access to AGOA, amid frustration over the country’s non-aligned position toward Russia’s invasion of Ukraine, and because they deem it too developed to qualify.

[Tensions](https://www.bloomberg.com/news/articles/2023-05-12/south-africa-requests-meeting-with-us-envoy-over-russia-arms-row) also spiked earlier this year when the US ambassador to South Africa, Reuben Brigety, accused it of supplying arms to Russia — an allegation Pretoria denied.

BRICS leaders from Brazil, Russia, India, China and South African will take part in a summit in Johannesburg next week, with Russian President Vladimir Putin participating virtually.

South Africa, which last year exported $2.7 billion of goods using AGOA and the so-called Generalized System of Preferences, will host an AGOA summit later this year.

Sooklal said that despite sanctions imposed on Russia, many companies continued to do business with the country.

“Everyone is turning a blind eye. This is a complex world we live in and money talks, despite sanctions,” he said.